Commentary

D1.765 Loan relationships—Unit trusts, investment trusts and venture capital trusts

Corporate tax
Corporate tax | Commentary

D1.765 Loan relationships—Unit trusts, investment trusts and venture capital trusts

Corporate tax | Commentary

Special classes of taxpayer for loan relationships

D1.765 Loan relationships—Unit trusts, investment trusts and venture capital trusts

Authorised unit trusts

An authorised unit trust is deemed to be a company and is subject to corporation tax, but is exempt from tax on chargeable gains1.

The debtor loan relationships of an authorised unit trust are fully within the loan relationships legislation. There is, however, a special exemption for capital profits and losses arising on creditor loan relationships. Where an authorised unit trust prepares its accounts in accordance with UK generally accepted accounting practice, capital profits, gains or losses are defined as

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